- Agreement strengthens airline's UK footprint
- Wizz began operating at Gatwick in October last year
Wizz Air (Wizz) said it will base four more of its aircraft at London Gatwick airport from next spring after picking up 15 daily slot pairs from Norwegian Air.
The low-cost, short-haul operator did not disclose the terms of its agreement but chief executive József Váradi said the deal would allow Wizz to “enhance our presence and competitive position in the London market”.
The company has had one aircraft based at Gatwick since October last year and Varadi said the coming year provided “a tremendous opportunity for UK aviation to get back on its feet".
Wizz Air’s share price rose by about 1 per cent by mid-morning but, after a slump in recent weeks triggered by pandemic concerns, they remain 4 per cent lower than at the start of this year. Its losses in the first half of this year narrowed to £120m as revenue rose by 87 per cent to £880m.
Norwegian Air had geared up to create a low-cost model for long-haul flights, but its debt soared as it ordered a raft of new aircraft and it had to be restructured. It raised NKr6bn (£507m) in debt and equity capital earlier this year and is now focused on short-haul routes to other Nordic and European countries.
Airlines will continue to be buffeted by pockets of pandemic-related turbulence in the short term, with HSBC analysts recently setting out a base-case scenario that the Omicron coronavirus variant will push back the sector's recovery by about six months. But Wizz has one of the lowest cost bases in the industry and the addition of these new routes puts it in a stronger position to benefit once the rebound takes flight. We maintain our buy call.
